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Chapter 2

ADM3322 Chapter 2: Consumer Behaviour


Department
Administration
Course Code
ADM 3322
Professor
Marzena Cedzynski
Chapter
2

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In#marketing#it#is#very#imp#to#understand#why#customers#behave#the#way#they#
do.#
!
Information#research
Need#awareness
!
Evaluation#of#alternatives#
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Making#a#purchase#decision
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1.
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Customer#experiences
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Customer#consumes#the#service#
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+#",-'#.#/'0&/1#".
2.
Evaluation#of#the#service#performance#
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Which#determines#future#intentions#e.g.#wanting#to#buy#again#from#
the#same#firm,#recommending#to#friends.#
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!0*1.%&"'()*#.
3.
+#",-'#.'0/*&2%1-0/ can#be#divided#in#3#main#stages#(figure#2.3#pg.#36):
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A#great#degree#of#interactions#between#service#employees#and#
customers,#usually#in#peopleJprocessing#services.
!
3-4(.'0/1)'1
Little#to#no#faceJtoJface#contact#between#service#employees#and#
customers,#common#for#many#informationJprocessing#services#that#
can#be#delivered#at#arm's#length.#
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506.'0/1)'1
The#nature#of#these#steps#varies#depending#on#whether#the#service#is:
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738.73988$+7:;8.<=>85.=?.+89@AB8.B=C+D<!7A=C
The#preJpurchase#stage#begins#with /##E.)6)"#/#**.and#continues#through#
information#search#and#evaluation#of#alternatives#to#deciding#whether#or#not#to#
buy#a#particular#service.#
!
!98$!D9B3:+8.+7:;8
When#a#person#or#organization#decides#to#buy#or#use#a#service,#it#is#triggered#by#
an#underlying#need#or#/##E.)"0&*)FG
!
The#awareness#of#a#need#will#lead#o#an#info#search#and#an#evaluation#of#
alternatives#before#a#decision#is#reached.#
!
Unconscious#minds
Physical#conditions#
External#sources#
Needs#may#be#triggered#by#the#following:
!
When#a#need#is#recognized,#people#are#likely#to#be#motivated#to#take#action#to#
resolve#it.#
!
In#developed#economies,#consumers#have#a#growing#need#to#spend#on#
vacations,#entertainment,#and#increasingly#novel#and#innovative#service#
experience.#
!
C##E.:6)"#/#**
Once#a#need#or#a#problem#has#been#recognized,#customers#are#motivated#to#
search#for#solution#to#satisfy#that#need.
!
Evoked#set#can#be#derived#from#past#experiences# or#external#sources#e.g.#
ads,#friends,#family.#
Several#alternatives#may#come#to#mind,#and#these#form#the##,0H#E.*#1.
!
The#consumer#is#likely#to#narrow#it#down#to#a#few#alternatives#to#seriously#
consider,#and#these#alternatives#then#form#the#'0/*-E#")1-0/.*#1.
!
During#the#search#process,#consumers#also#learn#about#service#attributes#they#
should#consider,#and#form#expectations#of#how#firms#in#the#consideration#set#
perform#on#those#attributes.#
!
A/I0"2)1-0/.+#)"'(
Once#the#consideration#set#and#key#attributes#are#understood,#the#consumer#
typically#makes#a#purchase#decision.
!
In#marketing,#we#often#use#multiJattribute#models#to#simulate#consumer#
decision#making.#
!
8,)F&)1-0/.0I.:F1#"/)1-,#.+#",-'#*
<&F1-$:11"-J&1#.<0E#F
This#model#holds#that#consumers#use#product#attributes#that#are#imp#to#them,#
to#evaluate#and#compare#alternative#offerings#of#firms#in#their#consideration#set.#
!
Each#attribute#has#an#importance#weight.
!
A#higher#weight#means#that#the#attribute#is#more#imp.#
!
Mentally#computing#a#global#score#for#each#company#e.g.#dry#
cleaner.
!
Linear#compensatory#rule1.
The#consumer#will#make#the#decision#based#on#the#total#overall#
score#in#conjunction#with#minimum#performance#levels#on#one#or#
several#attributes.#
!
Conjunctive#rule2.
2#common#decision#rules#to#come#to#a#decision:
!
Firms#need#to#ensure#that#their#service#is#in#the#consideration#set
Firms#can#change#and#correct#consumer#perceptions
They#can#also#shift#importance#weights#
Firms#can#introduce#new#attributes#
Service#providers#who#understand#how#their#target#customers#make#decisions#
can#try#and#influence#that#decisionJmaking#process#in#a#number#of#ways#to#
enhance#their#chacne#of#being#the#chosen#provider:
!
The#objective#is#to#shape#the#firm's#target#customers'#decision#making#so#that#
they#can#make#the#"right"#choice,#that#is,#choose#the#firm's#service#offering.
!
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+#",-'#.8/'0&/1#"*.9)/4#.I"02.3-4(.B0/1)'1.10.506.B0/1)'1.
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7(#)1"#.)*.).<#1)%(0".I0".+#",-'#.>#F-,#"MN.)/.A/1#4")1-,#.!#"*%#'1-,#.
+89@AB8.8CB=DC789.+7:;8.
!=+7$!D9B3:+8.+7:;8.
Chapter(2(*Consumer(Behaviour
Wednesday,# September# 16,#2015
10:44#PM
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